The Crude Oil Refiners Association of Nigeria has called for the reinvestment of oil windfall revenues to strengthen local refining capacity, warning that domestic refining has become a strategic necessity for the country.

In a statement by the association’s spokesman, Eche Idoko, CORAN said the ongoing crisis in the Middle East had delivered a mixed outcome for Nigeria, noting that while higher crude prices had increased the pump prices of petroleum products, national revenues had also risen.

“The ongoing crisis in the Middle East has delivered a mixed blessing for Nigeria. While the global surge in crude oil prices has driven up the pump prices of petrol, diesel, and aviation fuel, it has also significantly increased national revenues,” the association said.

It stressed that the current situation underscored the importance of domestic refining, adding, “However, beyond these gains, one lesson is clear: local refining capacity is no longer optional—it is strategic.”

According to the group, existing local refining capacity had helped retain value within the economy. It said, “The presence of domestic refining—anchored by the Dangote Refinery and supported by modular refineries—has helped Nigeria retain value within its economy. What would have previously been spent on imports, subsidy burdens, and FX differentials is now being conserved.”

The association urged the Federal Government to channel the gains into the sector, stating, “As the Federal Government considers how to utilise these windfalls, it must act with urgency and foresight. These gains must be reinvested strategically.”

It proposed the establishment of a domestic refinery development fund, saying, “Government should urgently establish a domestic refinery development fund to support new refinery projects, expand existing refining capacity, and develop storage, logistics, and distribution infrastructure. This will unlock investment and de-risk the sector.”

The group also highlighted the role of indigenous crude suppliers already supporting local refineries. It stated, “It is important to clearly state that beyond NNPC, indigenous producers are already supplying crude to local refineries today.

“These include EOP Energy Resources Ltd, Pillar Oil Limited, Inejeshia Nigeria Limited, and Millennium Oil & Gas Company,” it added.

The association noted that these companies are actively sustaining domestic refining operations and that policy must recognise this.

It called for targeted incentives, including access to rigs and technical support; single-digit financing through the Bank of Industry; performance-based incentives tied to volumes supplied locally; and priority access to evacuation and logistics infrastructure.

On crude supply, the association said, “The domestic crude supply obligation must be enforced, but with transparent pricing, fair commercial terms, and regulatory clarity. The goal is alignment—not coercion.”

The association also urged policies to protect local refining capacity, stating, “Nigeria must protect its refining gains by: prioritising locally refined products; reducing dependence on imports; implementing strategic trade protection.”

It emphasised that energy security requires deliberate policy support. The statement noted that Nigeria stands at a defining moment and the government must now consolidate the gains by investing in the sector, supporting existing suppliers, ensuring steady crude supply, and protecting local capacity.

“This is how energy security is built—by design, not by chance. If Nigeria gets this right, the refining sector will stabilise prices, conserve foreign exchange, and drive long-term economic growth. The foundation has been laid. Now is the time to build,” the statement added.